Distributed Generation Interconnection Seminar

Transcription

1 Distributed Generation Interconnection Seminar April 19, 2018 National Grid 939 Southbridge Street, Worcester, Massachusetts Auditorium

2 Agenda 8:30 Registration 9:00 Welcome, Opening Remarks Will Kern 9:05 Expedited & Standard Process Overview Eric Munzert, Tim Kounlavouth 9:30 ISO-NE Ride Through Requirement Jim Ryan 9:50 New DG User Interface Andrea Agra, Adam Markopoulos 10:20 Break 10:30 SMART Program Summary Sam Nutter, CLEAResult 11:30 Questions 12:00 Adjourn 2

3 DG Updates This text box and image can be deleted and replaced with your own selection from Brand Central s image library. This text box and image can be deleted and replaced with your own selection from Brand Central s image library.

4 DG Updates High Saturation Areas Central MA has high saturation in particular- Barre, Ware, Gardner stress on substation transformers and feeders Impact on interconnection process: higher costs for system modification upgrades, Longer times for impact studies if over $ 1 Million 4

5 DG Updates- Energy Storage Documentation At a minimum the following supplemental data will be required for all applications that include storage an operating narrative for the energy storage including Usage and operating modes System configuration Energy Storage and PCS Technical Details System Applications Documentation needed will be sent to the customer prior to the impact study Documents: 1) Supporting Documentation for Interconnection Study Application For Inverter-based DER Systems 2) ESS Data Collection 5

6 Safety Moment: Smith System 5 Keys to Safe Driving # 1. Aim High in Steering. Look a minimum of 15 seconds ahead of you. # 2. Get the Big Picture. Maintain 4 second following distance. Check mirrors every 5-8 second. # 3. Keep Your Eyes Moving. Do not focus on any object for more than 2 seconds. # 4. Leave Yourself an Out. Maintain open space around your vehicle. # 5. Make Sure They See You. Seek eye contact or try and observe where other drivers are looking. 6

7 Agenda 8:30 Registration 9:00 Welcome, Opening Remarks Will Kern 9:05 Expedited & Standard Process Overview Eric Munzert, Tim Kounlavouth 9:30 ISO-NE Ride Through Requirement Jim Ryan 9:50 New DG User Interface Andrea Agra, Adam Markopoulos 10:20 Break 10:30 SMART Program Summary Sam Nutter, CLEAResult 11:30 Questions 12:00 Adjourn 7

8 National Grid Interconnection Process for Distributed Energy Resources 8

9 Topics Covered Purpose and Scope Process Mechanics Milestones and timelines 9

10 Importance of the Interconnection Process Safety of utility workers and general public No adverse impact to power quality, in terms of: Islanding Transient Voltage Conditions Noise and Harmonics Frequency Voltage Level Machine Reactive Capability Customers cannot interconnect to the Electric Power System (EPS) without the Company s authorization. Billing implications 10

11 Interconnection Process Steps Pre-Application Application Simplified/Expedited/Standard Engineering Review Supplemental Review/Impact Study/Detailed Study Conditional Approval (to construct DG system) National Grid Construction Witness Test Authorization to Interconnect

12 Simplified Review Process

13 Simplified Criteria UL Listed, inverter based systems with power ratings of 15kW (was previously 10 kw) or less on a single phase service on a radial feed UL Listed, inverter based systems with power ratings of 25kW or less on a three phase service on a radial feed. The Simplified Process does not apply for: non-listed inverters or other generators (induction / synchronous / asynchronous) aggregate generation capacity of listed inverters that exceed the above-mentioned limits 13

14 Expedited Review Process

15 Expedited Criteria Single phase customers with listed single-phase inverter based systems with power ratings of >15 kw on a radial feed Three phase customers with listed three-phase inverter based systems with power ratings of >25kW on a radial feed Any project that did not pass the Simplified process screens Non-simplified projects that do not require an impact study Maximum size and supplemental review is based on review of screens 15

16 Expedited Review Path Eligible Facilities Acknowledge Receipt of Application Expedited Listed Inverter DG (3 days) If any screens are not passed, the Company may require a Supplemental Review Agreement before providing an Interconnection Service Agreement Review Application for Completeness Complete Review of All Screens Complete Supplemental Review (if needed) Send Executable Agreement 10 days 25 days 20 days or Standard Process 10 days Key threshold: if aggregate generation is less than 67% of minimum load on the feeder. Other screens review voltage quality, reliability and safety to reduce the potential need for impact studies. Total Maximum Days Construction Schedule 45/65 days By Mutual Agreement Relay control system must be well defined to make supplemental review easier. Notice/ Witness Test Within 10 days of receiving CoC or by mutual agreement 16

17 Standard Review Process

18 Standard Criteria Applies to: Projects that require System Impact Study (SIS) Large-scale DG projects Generally greater than 500 kw but project specific DG projects requiring system modifications at the substation level Non-listed inverters or generators other than PV: Induction, Synchronous, Asynchronous Most CHP systems All projects that do not qualify for the Simplified or Expedited process 18

19 Standard Review Path Eligible Facilities Acknowledge Receipt of Application Review Application for Completeness Complete Standard Process Initial Review Standard Any DG (3 days) 10 days 20 days Impact Study will determine the level of impact on EPS, other customers, other generators Impact and/or Detailed Study will determine System Modifications required and cost (Risk of Islanding) ISO-NE Notification Process and Transmission Study may be required Send Impact Study Agreement Complete Impact Study Complete Detailed Study (if needed) 5 days 55 days or 60 Days Complex 30 days or by mutual agreement Interconnection Service Agreement (ISA) provided after study completed or an Early ISA could be requested if Detailed Study is required Send Executable Agreement (ISA) Total Maximum Days 15 days 135/160 days (200 days for Standard Complex) If substation modifications required, Company has 60 BD for study (MDPU 1320 pg. 50) Construction Schedule By Mutual Agreement Witness Test 10 days or by mutual agreement 19

20 Summary and Recommendations This is a high-level overview of the interconnection process. The interconnection tariff, applicable rules, laws, regulations and MDPU orders set forth the interconnection requirements. The customer must comply with all interconnection requirements. Submit your interconnection application with National Grid early, during conception phase before committing to buying no matter how simple or small the DG might be. Large interconnection applications take longer to study Proposed facilities 5MW must undergo ISO-NE Notification Process and Transmission Study Company processing time frames are standard working days (Business Days) and do not include customer delays, including due to missing information, third party delays, or force majeure events 20

21 Project Design Changes Before considering any system design changes consult your CEI project manager, including but not limited to: Adding energy storage Change in system size Change in generator type Change in inverters 21

22 Agenda 8:30 Registration 9:00 Welcome, Opening Remarks Will Kern 9:05 Expedited & Standard Process Overview Eric Munzert & Tim Kounlavouth 9:30 ISO-NE Ride Through Requirement Jim Ryan 9:50 New DG User Interface Andrea Agra and Adam Markopoulos 10:20 Break 10:30 SMART Program Summary Sam Nutter, CLEAResult 11:30 Questions 12:00 Adjourn 22

23 Retail Connections Policy & Standards Updates 23

24 Recent Updates ESB 756 Interim Amendments Published Feb 2018 ISO NE Ride Through Request Published Feb 2018 Section and 7.8 Updated Expected to be updated June 2018

25 ISO NE Ride Through Requirements

26 Who is ISO NE? New England Independent System Operator Operates the transmission system in New England Directs the flow of electricity Concerned with bulk stability (i.e. preventing major blackouts)

27 ISO NE Ride Through Requirements Advanced implementation of new IEEE settings Similar to California Rule 21 and Hawaii ride through requirements New England is in the early beginning of a US-wide industry change

28 Why is ISO NE Concerned? Distributed Energy Resources (DERs) are adding up National Grid presently has over 1.38 GW connected across its system in the U.S. Concerns with effects on transmission system reliability Example California Blue Cut Fire Event

29 Blue Cut Fire Event - CA Rapid loss of 1.1GW of PV generation Source: 1,200 MW Fault Induced Solar Photovoltaic resource Interruption Disturbance Report June 2017, North American Electric Reliability Corporation (NERC). _Fault_Induced_Solar_Photovoltaic_Resource_Interruption_Final.pdf

30 Ride Through Requirements

31 Voltage Ride Through Capability Requirements

32 Frequency Ride Through Capability Requirements

33 Trip Settings

34 Trip Settings Updated in ESB 756 **See ESB 756 C or D Section for Default Relay and Inverter Trip Settings** ESB 756 C Table Utility Grade Relay and Parallel Generation Default Voltage & Frequency Set Points DEVICE PICKUP RANGE CLEARING TIME RANGE (sec) DEFAULT CLEARING TIME (sec) Under Frequency (81U) < 56.5 Hz Under Frequency (81U) < ( ) Hz adjustable Default set to 58.5 Hz Over Frequency (81O) 61.2 Hz < f <62.0Hz Over Frequency (81O) > 62.0 Hz Under Voltage (27) < 50% of Nominal Under Voltage (27) 50% <V< 88% of Nominal Over Voltage (59) 110% <V< 120% of Nominal Over Voltage (59) 120% of Nominal Pickups are exact set points and the time delays are maximum total clearing times (including relay and device interruption time).

35 How is this an Advanced IEEE Implementation? Inverters Required to meet Ride Through matching IEEE Category II Voltage Ride Through Frequency Ride Through Uses new IEEE Vocabulary Momentary cessation, permissive operation, etc. Trip Settings align with those permitted in IEEE Category II Wider voltage trip settings (than 2003) Wider frequency trip settings (than 2003)

36 What Do We Look For in Applications? Ride Through: UL 1741 SA Certification documentation Proof of the ISO requirements for ride through (such as NRTL letter/certification, or letter from manufacturer for pending testing) One line must show UL 1741 SA inverters or pending UL 1741 SA inverters (Verify pending gets listed to SA with ISO ride through prior to Witness test/operation) Nameplate should show UL 1741 SA compliance and shall be marked as a Grid Support Interactive Inverter or Grid Support Utility Interactive Inverter Some UL1741 SA tested functions MUST be default set as shown in Table V (next slide) Updated Trip Settings Study One Lines must show correct trip settings Should match defaults in ESB 756 section and ISO request Witness Test Inverter Witness or Screen Shot of Settings verification

37 UL 1741 SA tested Functions That Must be set to Specific Defaults Table V Source: Inverter Source Requirement Document of ISO New England (ISO- NE) Footnote 2: OFF and operating at unity PF. Or set to ON with unity PF.

38 When the Requirements Apply: Inverter-based Projects over 100kW: Application received March 1, 2018 or later Inverter-based Projects 100kW or less: Application received June 1, 2018 or later See National Grid s website for more info: MA: RI:

39 Website References

40 Agenda 8:30 Registration 9:00 Welcome, Opening Remarks Will Kern 9:05 Expedited & Standard Process Overview Eric Munzert & Tim Kounlavouth 9:30 ISO-NE Ride Through Requirement Jim Ryan 9:50 New DG User Interface Andrea Agra and Adam Markopoulos 10:20 Break 10:30 SMART Program Summary Sam Nutter, CLEAResult 11:30 Questions 12:00 Adjourn 40

41 Agenda 8:30 Registration 9:00 Welcome, Opening Remarks Will Kern 9:05 Expedited & Standard Process Overview Eric Munzert & Tim Kounlavouth 9:30 ISO-NE Ride Through Requirement Jim Ryan 9:50 New DG User Interface Andrea Agra and Adam Markopoulos 10:20 Break 10:30 SMART Program Summary Sam Nutter, CLEAResult 11:30 Questions 12:00 Adjourn 41

42 Agenda 8:30 Registration 9:00 Welcome, Opening Remarks Will Kern 9:05 Expedited & Standard Process Overview Eric Munzert & Tim Kounlavouth 9:30 ISO-NE Ride Through Requirement Jim Ryan 9:50 New DG User Interface Andrea Agra and Adam Markopoulos 10:20 Break 10:30 SMART Program Summary Sam Nutter, CLEAResult 11:30 Questions 12:00 Adjourn 42

43 Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth COMMONWEALTH OF MASSACHUSETTS Charles D. Baker, Governor Karyn E. Polito, Lt. Governor Matthew A. Beaton, Secretary Judith F. Judson, Commissioner March 2018 Solar Massachusetts Renewable Target (SMART) Program Summary

44 Purpose of Presentation and Links to Program Resources This presentation is designed to provide stakeholders with easily digestible information on the current design and status of the SMART Program, but should not necessarily be relied upon by stakeholders when making financial decisions. DOER strongly recommends that stakeholders consult the official resources listed below. For the official program rules, procedures, and eligibility criteria, stakeholders should consult the Department of Energy Resources (DOER) SMART regulation (225 CMR 20.00), which was promulgated on August 25, 2017 and can be accessed at: Additionally, the SMART regulation is supplemented by several Guidelines published by DOER, which clarify how elements of the regulation will be enforced and can be found at: Development of the SMART Program Webpage At this time, the SMART Program is not fully in effect as the Department of Public Utilities still has an open proceeding to review the model tariff that was jointly filed by the electric distribution companies in September Information on the status of this proceeding can be found at: (type in and click go) Program updates will continue to be provided by DOER as the program moves closer towards full implementation. Status updates and more information on the program can be found at the following two webpages: masmartsolar.com (Solar Program Administrator s SMART Website) Development of the SMART Program Webpage Interested stakeholders can sign up for updates from DOER at: (select Solar PV list include SREC Contacts ) Questions on the program should be directed to one of the following: DOER.SMART@state.ma.us MA.SMART@clearesult.com 44 Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth

45 Basic Features of SMART Program 1,600 MW AC declining block tariff program that provides fixed Base Compensation Rates to qualified generators Base Compensation Rates decline as Capacity Blocks are filled Applies to all investor owned electric distribution companies The amount of time a facility may receive compensation under the tariff is based on facility s AC rated capacity 10-year term for facilities less than or equal to 25 kw AC 20-year term for facilities larger than 25 kw AC Compensation structure differentiated between behind-the-meter and standalone facilities Four types of Compensation Rate Adders are available to eligible facilities: Location Based Adders Off-taker Based Adders Energy Storage Adder Solar Tracking Adder Maximum project size of 5 MW AC per parcel 45 Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth

46 Additional Program Features Initial Base Compensation Rates were established using the results of a competitive procurement for larger projects (> 1 MW) and were announced on January 11, 2018 Base Compensation Rates are based on a facility s electric distribution company and Capacity Block Eligible projects may elect to receive compensation for energy through one of three mechanisms: Net metering (via Net Metering Tariffs) Qualifying facility tariff (via QF Tariffs) Alternative on-bill crediting mechanism (via SMART Tariffs) Alternative on-bill crediting mechanism is a new energy compensation option that is designed to be an alternative to virtual net metering Alternative on-bill credit is not proposed to be made available to facilities with on-site load 46 Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth

47 Additional Program Features Program design steers projects towards optimal locations by providing Location Based Adders and Greenfield Subtractors A Greenfield Subtractor will be applied to the Base Compensation Rate of any facility sited on open space that does not meet the criteria to receive the full incentive Energy storage will be compensated via variable adder that is based on the ratio of storage capacity to solar capacity as well as the duration of the storage Minimum performance standards will apply to ensure grid benefits are realized 47 Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth

48 Solar Program Administrator CLEAResult was announced as the Solar Program Administrator on November 13, 2017 CLEAResult has partnered with Clean Power Research and will utilize its PowerClerk platform to accept applications CLEAResult will be responsible for: Reviewing applications and managing block reservations Calculating total compensation rates Making recommendations to DOER and electric distribution companies on project eligibility Creating the public interface for SMART program, through its website and application portal CLEAResult s SMART Program website is now live: 48 Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth

49 Factors that Establish a Solar Tariff Generation Unit s Total Compensation Rate Electric Distribution Company Service Territory Base Compensation Rates are differentiated by electric distribution company service territory Capacity Block Base Compensation Rates are differentiated by Capacity Block, which are established for each service territory and may be subscribed faster in one service territory than another Facility s AC Rated Capacity Base Compensation Rates are also differentiated by system size Compensation Rate Adder Eligibility Depending on its rate capacity, a facility may be eligible to receive one or more Compensation Rate Adders Greenfield Subtractor Applicability If a facility falls under Category 2 or Category 3 Land Use, it will be subject to a Greenfield Subtractor (see slides 14-17) Behind-the-Meter Facility vs. Standalone Facility While being classified as Behind-the-Meter vs. Standalone does not change the total compensation rate for which a facility is eligible under the tariff, the actual incentive payment is calculated differently depending on whether the facility serves an on-site load or exports 100% of its output to the electric grid 49 Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth

50 Capacity Block Sizes Total Capacity Available per Capacity Block (MW AC) Distribution Company Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 8 Total Fitchburg Gas & Electric d/b/a Unitil Massachusetts Electric d/b/a National Grid Nantucket Electric d/b/a National Grid NSTAR d/b/a Eversource Energy WMECO d/b/a Eversource Energy Not Applicable Not Applicable Total Capacity Capacity available in each service territory was determined by multiplying 1,600 MW by each distribution company s percentage share of total statewide distribution load in 2016 Unitil and Nantucket Electric have each elected to have fewer than eight blocks, as permitted by regulation Each block has a minimum of 20% and a maximum of 35% of capacity set-aside for projects <=25 kw AC Capacity selected under the initial competitive procurement is deducted from the capacity available under Block 1 for each distribution company More information can be found in DOER s Guideline on Capacity Blocks, Base Compensation Rates, and Compensation Rate Adders 50 Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth

51 Competitive Procurement Results Bids for approximately 100 MW of projects were jointly solicited by the distribution companies in November 2017 Each company solicited an amount of capacity proportional to their load share Results of the procurement were announced on January 11, 2018 Results were used to establish the Base Compensation Rates for Block 1 in each service territory Massachusetts Electric d/b/a National Grid Nantucket Electric d/b/a National Grid NSTAR d/b/a Eversource Energy WMECO d/b/a Eversource Energy Fitchburg Gas & Electric d/b/a Unitil MW Solicited MW Received MW Selected Clearing Price ($/kwh) $ N/A $ $ N/A Mean Price ($/kwh) $ N/A $ $ N/A Block 1 Base Compensation Rate for 1-5 MW Facilities ($/kwh) $ $ $ $ $ Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth

52 Block 1 Base Compensation Rates Electric Distribution Company Generation Unit Capacity Term Length Block 1 Compensation Rate Low income less than or equal to 25 kw AC 10-year $ Less than or equal to 25 kw AC 10-year $ Fitchburg Gas & Electric d/b/a Unitil Greater than 25 kw AC to 250 kw AC 20-year $ Massachusetts Electric d/b/a National Grid Greater than 250 kw AC to 500 kw AC 20-year $ Greater than 500 kw AC to 1,000 kw AC 20-year $ Greater than 1,000 kw AC to 5,000 kw AC 20-year $ Nantucket Electric d/b/a National Grid NSTAR Electric d/b/a Eversource Energy WMECO d/b/a Eversource Energy Low income less than or equal to 25 kw AC 10-year $ Less than or equal to 25 kw AC 10-year $ Greater than 25 kw AC to 250 kw AC 20-year $ Greater than 250 kw AC to 500 kw AC 20-year $ Greater than 500 kw AC to 1,000 kw AC 20-year $ Greater than 1,000 kw AC to 5,000 kw AC 20-year $ Low income less than or equal to 25 kw AC 10-year $ Less than or equal to 25 kw AC 10-year $ Greater than 25 kw AC to 250 kw AC 20-year $ Greater than 250 kw AC to 500 kw AC 20-year $ Greater than 500 kw AC to 1,000 kw AC 20-year $ Greater than 1,000 kw AC to 5,000 kw AC 20-year $ Base Compensation Rates in Massachusetts Electric, NSTAR Electric, and WMECO decline 4% per Capacity Block over eight blocks Base Compensation Rates in Fitchburg Gas & Electric decline 8.8% per Capacity Block over four blocks Base Compensation Rates in Nantucket Electric decline by 16% per Capacity Block over two blocks More information can be found in DOER s Guideline on Capacity Blocks, Base Compensation Rates, and Compensation Rate Adders 52 Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth

53 Compensation Rate Adders There are four categories of Compensation Rate Adders Location Based Adders Off-taker Based Adders Energy Storage Adder Solar Tracking Adder Systems larger than 25 kw AC may qualify for one adder from each category Systems less than or equal to 25 kw AC may only qualify for the Energy Storage adder More details on the eligibility criteria for certain adders can found in the following DOER Guidelines Definition of Agricultural Solar Tariff Generation Units Guideline Definition of Brownfield Guideline Energy Storage Adder Guideline Low Income Generation Units Guideline SQ and Capacity Block Reservation Guideline These Guidelines are published at: 53 Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth

54 Adder Values Location Based Adders Type Adder Value ($/kwh) Agricultural $0.06 Building Mounted $0.02 Brownfield $0.03 Floating Solar $0.03 Landfill $0.04 Solar Canopy $0.06 Energy Storage Adder Type Adder Value ($/kwh) Storage + PV Variable Off-taker Based Adders Type Adder Value ($/kwh) Community Shared Solar (CSS) $0.05 Low Income Property Owner $0.03 Low Income CSS $0.06 Public Entity $0.02 Solar Tracking Adder Type Adder Value ($/kwh) Solar Tracking $0.01 Adder values will decline by 4% as adder tranches are filled The first adder tranche is 80 MW for each adder Subsequent tranche sizes will be established by DOER More information on adder values and future tranche sizes can be found in DOER s Guideline on Capacity Blocks, Base Compensation Rates, and Compensation Rate Adders 54 Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth

55 Incentive Payments: Standalone vs. Behind-the-Meter Standalone facilities: Any facility with no associated load other than parasitic or station load Net Metered, Alternative On-bill Credit, and Non-net Metered Solar Tariff Generation Units Incentive payment varies over life of project and is equal to all-in compensation rate (i.e. base + adders) minus the value of the energy Behind-the-Meter Facilities: Any facility that does not meet the definition of standalone Incentive payment value is fixed for the duration of the tariff term and is determined at the time a project is interconnected Facilities may or may not be eligible for net metering, but net metering eligibility has no impact on calculating the total compensation rate and the SMART incentive payment 55 Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth

56 Energy Compensation and Incentive Compensation for Standalone Facilities The total compensation to all SMART facilities is intended to account for energy and for incentive compensation The method of calculating the incentive payment depends on whether a system is classified as Behind-the-Meter or Standalone Standalone facilities: The Value of Energy depends on the type of energy compensation the facility is receiving and will be either a bill credit or direct payment Net Metered Generation Unit The value of the bill credit determined by the system s net metering eligibility pursuant to MGL c and 220 CMR Alternative On-bill Credit Generation Unit The value of the bill credit determined by the final SMART Tariff, currently proposed at basic service Non-net Metered Generation Unit The value of the direct compensation subject to the utility company s Qualifying Facility Tariff Energy compensation + incentive payment always equals the total compensation rate for which a system is qualified under SMART 56 Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth

57 Standalone Incentive Calculation Standalone Solar Tariff Generation Unit Incentive Payment = Base Compensation Rate + Compensation Rate Adders Greenfield Subtractor kwh Value of Energy Generated Example: A 500 kw net metered Canopy Solar Tariff Generation Unit facility qualifies under Eversource Block 1 and is eligible to receive a $ /kWh all-in compensation rate Canopy Solar Tariff Generation Unit Adder is $0.06/kWh Greenfield Subtractor is $0.00/kWh Net metering credit value is approximately $0.20/kWh Incentive payment will fluctuate with change in net metering credit value Total compensation value will always be $ /kWh for entire 20-year tariff term 57 Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth

58 Energy Compensation and Incentive Compensation for Behind-the-Meter Facilities The total compensation to all SMART facilities is intended to account for energy and for incentive compensation The method of calculating the incentive payment depends on whether a system is classified as Behind-the-Meter or Standalone Value of Energy: The Value of Energy approximates the avoided costs of electricity from a kwh of on-site load offset by a solar facility and is equal to the sum of the following: Current volumetric distribution rate Current volumetric transmission rate Current volumetric transition rate Three-year average Basic Service Rate These values are based on the distribution company service territory and the rate class of the Enduse Customer s meter (e.g. Massachusetts Electric customer on an R-1 residential rate) The value of the incentive payment the facility is eligible to receive is calculated by subtracting the Value of Energy from the total compensation rate to which it is entitled under the tariff This resulting incentive payment value is fixed for the duration of the tariff term of the facility and does not fluctuate as electricity prices change as it does for Standalone Facilities Because of this structure, Behind-the-Meter facilities will not necessarily always receive the total compensation rate for which a system is qualified under SMART, but may receive more or less depending on 1) the future retail price of electricity, and 2) the amount of electricity exported by the facility to the grid (i.e. facilities that export more electricity may receive less total compensation because their avoided electricity costs will be lower than if the electricity was consumed behind-the-meter) More information on how to calculate an estimated Value of Energy and SMART incentive payment value can be found in DOER s Value of Energy Guideline and Calculator for Behind-the-Meter facilities: NEED HYPERLINK 58 Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth

59 Behind-the-Meter Incentive Calculation Behind the Meter Solar Tariff Generation Unit Compensation Rate = Base Compensation Rate + Compensation Rate Adders Current Volumetric Delivery Rates + Three year average of Basic Service Rates Example: A 500 kw facility qualifies under National Grid Block 1 at a $0.255/kWh compensation rate and is eligible for a $0.02/kWh Building Mounted Adder for a total compensation rate of $0.275/kWh Project is interconnected behind a meter on the G-1 rate class The Value of Energy (i.e. volumetric distribution + transmission + transition + 3-year average basic service) for this particular rate class is determined to be $0.18/kWh The incentive rate would be set at $0.095/kWh ($0.275/kWh minus $0.18/kWh) and would remain in effect for 20 years, regardless of what happens to electric rates over that timeframe 59 Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth

60 Energy Storage Requirements Minimum and Maximum Nominal Rated Power: The nominal rated power capacity of the Energy Storage System paired with a solar photovoltaic Generation Unit must be at least 25 percent and shall be incentivized for no more than 100 percent of the rated capacity, as measured in direct current, of the solar photovoltaic Generation Unit. Minimum and Maximum Nominal Useful Energy: The nominal useful energy capacity of the Energy Storage System paired with the solar photovoltaic Generation Unit must be at least two hours and shall be incentivized for no more than six hours. Minimum Efficiency Requirement: The Energy Storage System paired with the solar photovoltaic Generation Unit must have at least a 65% round trip efficiency in normal operation. Data Provision Requirements: The Owner of the Energy Storage System must provide historical 15-minute interval performance data to the Solar Program Administrator for the first year of operation and upon request for the first five years of operation. Operational Requirements: The Energy Storage System must discharge at least 52 complete cycle equivalents per year and must remain functional and operational in order for the solar photovoltaic Generation Unit to continue to be eligible for the Energy Storage Adder. 60 Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth

61 DPU Procedural Schedule The DPU has established the following procedural schedule for the docket: Tuesday, September 12, 2017 Thursday, October 19, 2017 Tuesday, October 24, 2017 Monday, November 13, 2017 Friday, January 12, 2018 Friday, January 26, 2018 Monday, January 29, 2018 Thursday, February 08, 2018 Wednesday, February 21, 2018 Friday, February 23, 2018 Tuesday, March 20, 2018 Thursday, March 29, 2018 Thursday, April 5, 2018 Monday, April 23, 2018 Monday, May 7, 2018 Monday, May 14, 2018 Monday, May 21, 2018 TBD Model Tariff filed by Electric Distribution Companies Deadline for Intervention Public hearing DPU issues Procedural Schedule Deadline for Intervenors to provide notice of intent to file testimony Reply Comment Deadline Deadline for Intervenors to file direct testimony Deadline for Electric Distribution Companies to file rebuttal testimony Deadline for Intervenors to file surrebuttal testimony Deadline for issuing discovery Final discovery responses due Evidentiary Hearings begin Evidentiary Hearings conclude Deadline for Intervenors to file initial briefs Deadline for Electric Distribution Companies to file initial brief Deadline for Intervenors to file reply briefs Deadline for Companies to file reply brief DPU issues Order on model tariff 61 Creating A Clean, Affordable, and Resilient Energy Future For the Commonwealth

62 Solar Program Administrator: Sam Nutter, Program Director Questions? Massachusetts SMART Program

63 Additional Questions? For any interconnection questions that are not related to a submitted application please contact: Distributed.generation@nationalgrid.com